Sugar prices in the global market are likely to remain higher around 19-22 US cents a pound for raws (RS 33.075-40.375 a tonne) due to lower production of the commodity in India and the European Union, reports The Hindu Businessline.
According to analysts, the situation would remain the same despite an increase in sugar production in Brazil and Thailand. India is not likely to allow additional export of the sweetener than the allowed export of six million tonnes (mt) for the ongoing sugar season, they said.
Sugar production in Brazil is expected to increase by 7.6% to 38.1 million tonnes (mt) this season. Fitch Solutions Country Risk and Industry Research states that sugar prices would continue to remain higher over a lower supply of sugar in various parts of the globe.
Sugar supply from the new crop might disappoint as the sugar stocks are low at present, said London-based diversified global financial services firm Marex.
